Episode 8: Wealth Building Strategies for someone starting out

5 key wealth strategies for those looking to start their wealth creation journey in 2023

Building wealth is a long term game and it starts from the foundation. You can’t build on shaky ground – here’s what you need to know.

Episode Highlights

• Welcome – not financial advice.
• Inherently means we are looking at low cost start up investment options.
• First thing to mention it is near impossible to start this phase of wealth creation if you haven’t mastered the first C in wealth – control
• Creating wealth without first mastering the major pitfall that most people fall in their finances;
  • Increase your expenses in line with income
  • Abuse of credit cards to buy things you don’t really need
  • Ignoring debts and not effectively managing your money – credit card example
  • Failing to effectively save
  • Sacrifice short term for the benefit long term.
• Building wealth is a long term game and it comes from the foundations up. You can’t build on shaky foundations
• Various news outlets report that 70% of people who win a lottery or get a big windfall end up broke in a few years, quoting a study by National Endowment for Financial Education (NEFE).
• Strategy 1: Invest in yourself:
  • Personal education, you are your best investment. Assets, jobs can all be taken away but no one can take away the knowledge you have built.
  • Now in the digital age there is a wealth of knowledge available to the masses at relatively low cost.
    • Podcasts – massive store of free knowledge on all subjects.
    • Books – cheap access to subject matter experts, billionaire level knowledge
    • Social media content – in amongst the videos of cats falling off stuff there can be hugely valuable 
    • YouTube – when we started out in property I gain a huge amount of knowledge from that 
    • Chat GPT – can write you a curriculum 
    • Networking – free events. Fair warning usually an upsell.
    • Learning earning and yearning. Merge then learn, constantly learning to grow the earning. Retirement is fallacy.
• Strategy 2: Stock and Shares:
  • Good long term play to build wealth with relatively small cash pots
  • You need to create money to invest, but you can do this from as little as £500 initial investment and £50 per month. Over time you can build up a decent fund.
  • Invest via a self managed platform like Hargreaves Lansdown or Vanguard. Transaction fees are very low and you choose what index to invest in.
  • We are talking here about an index as opposed to individual shares, as these are inheritantly riskier.
  • Something like the S&P 500 – The Standard and Poor’s 500, or simply the S&P 500, is a stock market index tracking the stock performance of 500 of the largest companies listed on stock exchanges in the United States. It is one of the most commonly followed
  • Since its inception in 1957 average annual return is over 11%
  • Example if you invest a starting pot of £1k and then £100 per month thereafter 10 year £25k after 20 years you would have £75k based on a 10% return.
  • This type of investment is not designed to make you rich but it does start to create a decent investment pot
  • Invest through your stock and shares ISA and you can invest up to £20k

About Your Host

Alex Robertson is a self-made property investor and businessman. He comes from a financial background, gaining a degree in Accounting and Finance and then going on to qualify as a chartered management accountant. Alex is one of Co-Founders of Real Estate Wealth Development, a group of companies in the property industry, with over 200 buy to let properties, training company, construction company and development business. He is also the co-author of the book Fast Track to Property Millions.

Resources

About Real Estate Wealth Development – how we started and grew a 200 property portfolio in 2.5 years.

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REAL Property Community – join our exclusive Facebook community. We host events, post training videos, and answer member questions.

Check out our book, Fast-Track to Property Millions